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Perdue says budget threatens Medicaid

ATLANTA - Gov. Sonny Perdue on Tuesday signed a midyear spending bill that includes a cash bailout for Georgia's Medicaid program which briefly stopped paying bills when it ran out of money last week.

However, Perdue warned lawmakers they are setting the stage for the same financial crunch to hit the health program 12 months from now because of the way they are writing the budget for the next budget year, which begins on July 1.

The Republican governor took special aim at a version of next year's budget written by the Democrat-led House. The measure leaves Medicaid and the HOPE scholarship program short-funded, in part to soften cuts which Perdue proposed in education. House leaders contend the money can be added back next session.

The Senate Appropriations Committee is set to approve its version of the spending plan on Wednesday.